Money is a rough topic for a lot of families. Many of us were raised in families where open communication about money was NOT the norm, and even if we want things to be different for our own children, we might not be entirely clear on what is appropriate and what is not. Teaching our children about money goes beyond just issuing an allowance—but how much should we actually share with our children about our own personal finances?
I don’t know if there is a set rule when it comes to financial information, but it stands to reason that it should be age appropriate, and we should regulate the emotions that we attach to our finances too. Kids can actually pick up on the emotions sooner and more obviously, than they grasp the words we tell them. If they get the feeling that money is a topic that isn’t discussed, or is shrouded in stress or secrecy—it may be hard for us to overcome that impression later.
Think of talking about money like talking about sex—our children are going to get a great deal of information from different sources—media marketing with messages about credit and consumption, as well as exposure to different lifestyles and spending styles among their peers and other family members. As parents, we need to share our own values and our own experiences in regards to finances in order to make sure we impart some accurate information—even if it feels uncomfortable for us.
Even young children can learn about budgeting and start to be taught how we have to make decisions with our money about purchases. As children get older, they can be taught how income and salaries affect the household budget, as well as changes in expenses. It is perfectly appropriate for children to know what the household income and expense budget is—as well as family values around saving and tithing. By eliminating the “mystery,” they can learn about money and finances in a practical, less emotionally-charged situation. One must be careful, however, not to create feelings of fear or instability among children when it comes to money. Choosing our language carefully, and sharing facts in a reassuring, educating, and thorough way, while encouraging trust and confidence that the parents are the adults when it comes to financial matters, can help children develop healthy and appropriate attitudes and money-management abilities.
See Also: Getting Comfortable Talking About Money
Should Teenagers Get an Allowance?
Would You Give Your Teenager a Credit Card?